Department for Business, Energy and Industrial Strategy

Post-Council Statement – Energy Council, 5 December 2016

Jesse Norman: The Energy Council, chaired by the Slovak Presidency, took place in Brussels on 5 December. I represented the UK at the Council on 5 December.The meeting began with a political debate on the options for regional cooperation, solidarity and transparency for the Gas Security of Supply Regulation. The aim of the Presidency was to find compromises and get political guidance from Member States.On regional cooperation, there was a broad split with no clear majority for either option put forward by the Presidency. A majority of Member States supported a risk-based approach, whist others wanted the clarity and certainty provided by the fixed region approach. On solidarity, most Member States supported some flexibility but others wanted some detail laid down in the regulation in order for arrangements to be consistent across the Union. On transparency of contracts, most Member States agreed on the need for strengthened exchange of information. On the basis of the discussion, the Presidency developed a compromise set of conclusions which gave more flexibility to Member States on solidarity, more transparency on contracts and agreement to pursue a risk-based approach to regional co-operation but with greater clarity on the composition of regions. These conclusions were consistent with the UK position and were agreed by all Member States. Adoption of these conclusions sets the path towards a general approach, which will form the basis for negotiating a final agreement with the European Parliament.Vice President Šefčovič (Energy Union) introduced the Commission’s Clean Energy Package, which was published on 30 November. He highlighted the Energy Union governance framework, and a need for reliable, transparent and long-term monitoring that streamlined reporting as well as the need to support the 2014 and 2015 European Council Conclusions. Commissioner Cañete (Climate Action and Energy) then provided a high-level overview of each of the main elements of the package, which together were intended to ensure that the EU stayed ahead in the clean energy transition and in mobilising the Paris agreement. An informal exchange of views on the package took place over lunch. We are considering how best to work with the Commission and other Member States during the forthcoming negotiations to improve the proposals in the package.The Council then held an exchange of views on the external dimensions of EU energy policy. There was general support for the progress that the EU had made in relation to its relationship with third countries on energy policy. Some Member States stressed the importance of the work with Ukraine, and that it should remain a priority. Others stated that diversification of supply sources and routes for energy into Europe was critical.The Council received an update from the Presidency on progress in negotiation of the Energy Efficiency Labelling Directive and the Decision on Inter-Governmental Agreements.The Commission presented recent developments in the field of external energy relations, which included the Paris agreement entering into force and the recent signature of the Memorandum of Understanding with Ukraine.Finally, the Maltese delegation presented its priorities for its Presidency. These fell into three areas: completing files already under discussion; creating momentum on the clean energy package, with informal and formal Council meetings focussed on this agenda; and EU-Mediterranean cooperation. 


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PUBLICATION OF THE RENEWABLE HEAT INCENTIVE: A REFORMED SCHEME. GOVERNMENT RESPONSE TO CONSULTATION

Mr Nick Hurd: Today my nobel Friend the Minister of State for Energy and Intellectual Property has made the following statement:In March 2016, the Government set out its proposals to reform the Renewable Heat Incentive (RHI) scheme in the consultation ‘The Renewable Heat Incentive - A reformed and refocused scheme’. The consultation ran from 3 March to 27 April 2016 and received 370 responses from individuals, businesses, trade bodies and other organisations. I am pleased to announce that the Government Response to the consultation has been published today.Heat accounts for almost half of UK energy use and a third of UK carbon emissions. Decarbonising how we use heat in our homes, businesses and buildings is therefore an essential part of how we transition to a low carbon economy. It can also in time help to make heating homes and other buildings more efficient and affordable.In November 2015, the Government renewed its commitment to the transition to a low carbon economy by confirming a continued budget for the RHI out to 2020/21. By confirming the available budget and setting out a number of reforms for how the scheme will operate, the Government intends to provide the level of certainty needed for consumers and industry to invest in renewable heating and for the market to transition towards being sustainable without Government support in future.It is vital that the scheme delivers value for money for taxpayers and supports the development of technologies that will be important for the long term. That is why we will be reforming the scheme to ensure it:Focuses on long-term decarbonisation: promoting the deployment of the right technologies for the right uses, while ensuring the RHI contributes to both our decarbonisation targets and to the UK’s renewable energy target.Offers better value for money and protects consumers: improving how costs are controlled, giving consumers more confidence in the performance of particular technologies and addressing potential loopholes in the scheme.Supports supply chain growth and challenges the market to deliver: driving cost reductions and innovation to help build growing markets that provide quality to consumers and are sustainable without Government support in future. 


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Home Office

Announcement of the new Chair of the Advisory Council on the Misuse of Drugs (ACMD)

Amber Rudd: I am pleased to announce that Dr Owen Bowden-Jones has been appointed to the ACMD both as a member and as its new Chair. This appointment is for a 3 year term, beginning on 1st January 2017. Dr Bowden-Jones is an experienced clinician who provides assessment and treatment for people experiencing harms from emerging problem drugs.The ACMD was established under the Misuse of Drugs Act 1971 and provides advice to Government on issues related to the harms of drugs. It also has a statutory role under the Psychoactive Substances Act 2016. Dr Bowden-Jones will replace Professor Les Iversen, whose term ends at the end of this year.I would like to take this opportunity to thank Professor Iversen for his dedication to chairing the ACMD over the past seven years.


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Foreign and Commonwealth Office

North Korea (the Democratic People’s Republic of Korea, DPRK)

Alok Sharma: I would like to update the House on recent developments regarding the Democratic People’s Republic of Korea, the international response and what actions the government is taking.The Government remains deeply concerned by North Korea’s continued development of its nuclear and ballistic missile programmes. This year we have seen two nuclear tests from North Korea, and an unprecedented number of ballistic missile launches. These actions have been accompanied by threatening rhetoric, and the continued prioritisation of the weapons programme over the well-being and needs of the North Korean people.On 14 September, I informed the House that the UN Security Council had agreed that North Korea’s fifth nuclear test on 9 September was a clear violation of existing Security Council resolutions, and that there would be a robust response.On 30 November, the UN Security Council adopted Security Council resolution 2321, a package of new, stronger measures to deter and challenge North Korea’s nuclear and ballistic missile programmes. This resolution builds on the provisions of UN Security Council resolutions 1718, 1874, 2087, 2094 and 2270.Significant measures in the new resolution are designed to constrain and disrupt the DPRK’s nuclear intentions. The new cap on coal exports, with a UN oversight mechanism, will directly affect the DPRK’s ability to raise foreign currency for their nuclear and ballistic missile programmes. This is estimated to reduce DPRK foreign trade income by $700m, and when combined with a metals export ban, will cut DPRK trade income by a quarter.The resolution tightens existing measures, and enhances controls on technology imports, on shipping, and on banking, as well as demonstrates a new resolve to disrupt any abuse of diplomatic privileges. This will send a strong signal as well as have important practical effects. This text, in addition to the UN Third Committee resolution on DPRK Human Rights adopted on 15 November, makes clear the explicit link between the DPRK’s proliferation choices and their shameful treatment of their own people. The United Kingdom has worked closely with P5 partners throughout the development of UNSCR 2321, and will be at the forefront of the discussion amongst EU Member States as we transpose the UNSCR swiftly into EU law.Both I and My Rt Hon. Friend, the Secretary of State for Foreign and Commonwealth Affairs, have spoken with counterparts regarding the increasingly belligerent and dangerous behaviour of the DPRK. The threat posed by the DPRK’s programmes to both regional and international security will continue to be at the forefront of our work.As the United Kingdom has done on many occasions, we continue to urge the Democratic People’s Republic of Korea to return to credible and authentic multilateral talks on its nuclear programme. We ask it to abide by its obligations under the Nuclear Non-Proliferation Treaty, and to permit full access by the International Atomic Energy Agency.


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